12-1598.10

12-1598.10. Continuing lien on earnings;
order

A. If it appears from the answer of the garnishee that the judgment debtor was an
employee of the garnishee, or that the garnishee otherwise owed earnings to the judgment
debtor when the writ was served, or earnings would be owed within sixty days thereafter
and there is no timely written objection to the writ or the answer of the garnishee
filed, on application by the judgment creditor the court shall order that the nonexempt
earnings, if any, withheld by the garnishee after service of the writ be transferred to
the judgment creditor who is entitled to such monies subject to the judgment debtor's
right to objection and hearing pursuant to this article. The court shall further order
that the garnishment is a continuing lien against the nonexempt earnings of the judgment
debtor.

B. If a timely objection is filed the court shall conduct a hearing pursuant to
section 12-1598.07 and shall make the following determinations:

1. Whether the writ is valid against the judgment debtor.

2. The amount outstanding on the judgment at the time the writ was served, plus
accruing costs.

3. Whether the judgment debtor was employed by the garnishee at the time the writ
was served.

4. Whether earnings were owed or would be owed by the garnishee to the judgment
debtor within sixty days after the service of the writ.

5. Whether the debt was, at the time of service of the writ, subject to an
effective agreement for debt scheduling between the judgment debtor and a qualified debt
counseling organization.

C. If the court makes an affirmative determination under subsection B, paragraph 1
of this section and subsection B, paragraph 3 or 4 of this section and determines that
the debt was not, at the time of service of the writ, subject to an effective agreement
between the judgment debtor and a qualified debt counseling organization, the court shall
order that the nonexempt earnings, if any, withheld by the garnishee after service of the
writ be transferred to the judgment creditor and further order that the garnishment is a
continuing lien against the nonexempt earnings of the judgment debtor. Otherwise the
court shall order the garnishee discharged from the writ.

D. A continuing lien ordered pursuant to this section is invalid and of no force
and effect on the occurrence of any of the following conditions:

1. The underlying judgment is satisfied in full, is vacated or expires.

2. The judgment debtor leaves the garnishee's employ for more than sixty days.

3. The judgment creditor releases the garnishment.

4. The proceedings are stayed by a court of competent jurisdiction, including the
United States bankruptcy court.

5. The judgment debtor has not earned any nonexempt earnings for at least sixty
days.

6. The court orders that the garnishment be quashed.

E. If no objections are filed to the answer of the garnishee and an order of
continuing lien is not entered within forty-five days after the filing of the answer of
the garnishee, any earnings held by the garnishee shall be released to the judgment
debtor and the garnishee shall be discharged from any liability on the garnishment.

F. If at the hearing the court determines that the judgment debtor is subject to
the twenty-five per cent maximum disposable earnings provision under section 33-1131,
subsection B and based on clear and convincing evidence that the judgment debtor or his
family would suffer extreme economic hardship as a result of the garnishment, the court
may reduce the amount of nonexempt earnings withheld under a continuing lien ordered
pursuant to this section from the twenty-five per cent to not less than fifteen per cent.

G. A court order entered pursuant to this section if recorded does not constitute a
lien against real property pursuant to section 33-961.

H. The court, sitting without a jury, shall decide all issues of fact and law.